Sources of Revenue:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
As provided by the Department of Revenue and the WVABCA:
This bill will raise only salaries and benefits for WVABCA Enforcement Inspectors, Agents and Supervisors. The bill also creates at the West Virginia Alcohol Beverage Control Administration (WVABCA) a career development process, a training manual, evaluation and testing procedures, a WVABCA Enforcement specific pay scale and an annual “length of service award” salary enhancement.
This bill will add to the WVABCA's budget for salaries and benefits paid to Enforcement Inspectors, Agents and Supervisors.
The WVABCA is a special revenue agency, therefore general revenue transfers would likely be adjusted to account for salaries and benefits proposed to be paid to Enforcement Inspectors, Agents and Supervisors.
The bill's annual length of service award is an annual salary enhancement based on $400 for each year of service upon completion of 2 years of service. This $400 would increase annually as each Inspector, Agent and Supervisor’s years of service increases. Again this would impact general revenue transfers.
Fiscal Note Detail
|Effect of Proposal
|1. Estmated Total Cost
|Repairs and Alterations
|2. Estimated Total Revenues
Explanation of above estimates (including long-range effect):
As the salary and benefits data has been provided by the WVABCA Personnel Department:
Personal Services would need to be increased to account for increased salaries and benefits (insurance federal tax issues, health costs, retirement and etc.) for only WVABCA Enforcement Inspectors, Agents and Supervisors.
Personal services would need to be increased by varying amounts in future years to account for the annual salary enhancement/length of service award for only for WVABCA Enforcement Inspectors, Agents and Supervisors.
WVABCA Budgeted position impact (the ½ FY 2011 impact would be roughly estimated at half of 2012 or $471,189.09)
FY 2012 = $942,378.18
FY 2013 = $985,434.18
FY 2014 = $997,734.18
FY 2015 = $1,009,542.18
FY2016 = $1,034,388.18
Total 5 year (all vacant & filled positions) Cost = $5,001,216.90
All these numbers assume no new hires and no changes to retirement and federal withholding requirements. The numbers will change once 4 advertised WVABCA Enforcement positions are filled.
As provided by the Department of Revenue and WVABCA:
SB 452 will have a fiscal impact by increasing WVABCA’s budget for salaries and benefits.
The WV Division of Personnel (“DOP”) is currently conducting a comprehensive classification and compensation review of all state agencies that is potentially undermined by singling out these particular classifications of employees at a single agency for unique treatment in this bill. Another course of action would be to await the final results of DOP’s review and recommendations before codifying classifications and salaries.
The employee classifications specified in this bill are not unique to the WVABCA and its enforcement division. Other agencies across state government have similar positions with the same or similar function. To address only one class of employee at one agency could create certain inequities.
The bill is contrary to the fair and equitable classification process and creates the potential for grievances among similarly classified employees who are not included within the bill’s limited reach. Such an arrangement may create two pay scales – one for WVABCA and another for the rest of state government.
The bill impacts 28 employees in the WVABCA Enforcement Division while other administrative employees in the Enforcement Division would not be eligible as well as other WVABCA employees (approximately 88).
SB 452 is technically placed in the wrong code since it covers personnel issues it should be in the WV DOP’s code sections. (See W.Va. Code §5-5-1 et seq. – Salary Increases for State Employees).
SB 452 is not clear if the bill covers both current exempt and civil service employees.
SB 452 creates an annual salary enhancement (length of service award of $400/year for each year of service applied retroactively) similar to the state employees’ annual increment for Enforcement Employees only. The statutory language authorizing such an enhancement may not be correct (See W.Va. Code §5-5-2 - Increment).
SB 452 fixes the salary and salary enhancements of Enforcement Inspectors and Agents. Any future salary increases or salary enhancements would need to be specifically granted and amended into statute otherwise the Enforcement Employees would not benefit.
The bill is not clear as to whether the Enforcement Employees would continue to receive the annual state employees’ increment and also the proposed salary enhancement/length of service award.
SB 452 states that the evaluation and testing of Enforcement Employees is for advancement but does not prohibit demotion or firing for failure to pass or complete certain evaluation and testing nor does it permit any merit based promotion or salary increase.
Person submitting Fiscal Note:
Anoop Bhasin on behalf of WVABCA
Email Address: Anoop.K.Bhasin@wv.gov